2013 Car Market: The Year of the Pickup

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By Douglas A. McIntyre Published
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It is too early to declare the final winners in terms of 2013 U.S. car and light vehicle sales. That will change shortly, as December and full-year data are released by the manufacturers that have shares of the American market. So far, most analysts have pointed to luxury imports as the leaders in terms of growth. That analysis is naive. The real victors in the U.S. industry are heavy pickup trucks, particularly those made by the Big Three.

As a concession to the strong numbers posted, particularly German luxury car makers, Mercedes sales will rise nearly 13% this year, BMW’s sales will rise more than 11% and Audi’s by over 13%. But the leader, BMW, will be fortunate to sell 300,000 cars.

The heavy pickups built by Ford Motor Co. (NYSE: F), General Motors Co. (NYSE: GM) and Chrysler — under the Ram brand — will reach 1.5 million in sales for 2013. That will be more than 10% of the entire market.

Ford is the clear winner among the three companies. Sales of its F-Series pickups will reach more than 725,000 this year. The product has been the top-selling car or light truck seller for most of the past three decades. Without it, Ford would be the number three car company in the United States, behind Toyota Motor Corp. (NYSE: TM).

GM’s Chevy Silverado will sell 460,000 units this year. Chevrolet has been chasing Ford in the category without success. That does not mean that the Silverado is not critical to GM. It is still the top U.S. car company’s best-selling product. Sales of GM’s next best-selling vehicle — the Equinox — will be fewer than 250,000 units.

The Ram Dodge Ram pickup is Chrysler’s flagship, despite the push the company continues to make for its Jeep brand and the Chrysler 300. Not a single Chrysler model is among the top 20 selling cars and light trucks in America. Jeep’s Grand Cherokee is at the bottom of that list and will have fewer than 175,000 unit sales for 2013.

The main argument for the success of the pickup is its versatility. It is a mix of business workhorse and family car. However, the reasons for the high sales of these vehicles are academic, at least insofar as what they bring in for the three companies in dollars.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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